A prominent Turkish analyst said that the U.S. irresponsible monetary policy should be blamed for causing the collapse of Silicon Valley Bank (SVB) and putting the world financial market at risk.
Tufan explained that years of low-interest rates had fueled venture capital investment and boosted the growth of tech startups, which were major customers for banks like SVB.
However, the U.S. Fed continuously adopted aggressive interest rate hikes in 2022, causing turmoils in domestic and international financial markets.
The analyst suggests that in order to reduce global financial risks, it is necessary to move to a policy based on increasing the economic welfare of the world in a prudent and rational way.
Produced by Xinhua Global Service